Finding 1164755 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-15
Audit: 374538
Organization: Isd #186 Pequot Lakes (MN)

AI Summary

  • Core Issue: The District inaccurately reported the number of student meals served, leading to potential loss of Federal funding.
  • Impacted Requirements: Accurate monitoring and reporting of meal counts are essential for determining State and Federal reimbursement rates.
  • Recommended Follow-Up: The District should review and improve its procedures for meal reporting to ensure compliance and maximize reimbursements.

Finding Text

Finding 2025-001 School Nutrition Program Meal Claims Federal Program: CFDA 10.553/10.555 Child Nutrition Cluster Condition: The District failed to properly report the number of student meals that were served and reported to the State via CLiCS, for which Federal funding was received. This issue was identified for only one month's reporting, with fewer meals being reported than actually served. Criteria: The District is required to accurately monitor, record, and report the numbers of meals that were served to students, including how many of these meals were served to students with a free, reduced, or paid status. This reporting determines State and Federal reimbursement rates the District receives for meals served. Cause: The internal controls over reporting established by the District were insufficient to properly prevent, or detect and correct, errors in the reporting of student meals. Effect: The failure to report all student meals eligible for reimbursement to the State resulted in the District not being reimbursed for eligible meals. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend that the District evaluate current procedures for accurately monitoring, recording, and reporting the number of meals served and ensure proper meal counts are reported to the State. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.

Corrective Action Plan

Finding 2025-001 School Nutrition Program Meal Claims 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding The District will evaluate current procedures for accurately monitoring, recording, and reporting the number and type of meals served. 3. Official Responsible Mr. Kurt Stumpf, Superintendent, is the official responsible for ensuring corrective action. 4. Planned Completion Date June 30, 2026. 5. Plan to Monitor Completion The Board of Education will be monitoring this Corrective Action Plan.

Categories

Subrecipient Monitoring Cash Management Reporting School Nutrition Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1164756 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $505,328
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $204,920
10.553 SCHOOL BREAKFAST PROGRAM $178,543
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $99,631
84.027 SPECIAL EDUCATION GRANTS TO STATES $90,376
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $28,133
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $28,054
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $7,746
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $4,378